Chip Stocks Slide Again as AI Spending Doubts and Rate Fears Persist
SOX sits 88% above its 52-week low of $6,160.045.
Summary
The Philadelphia Semiconductor Index closed down 1.7% Thursday, extending a selloff that has now run for over a week as investors question the sustainability of AI data-center demand and face higher funding costs. The move follows the 3.3% intraday drop reported earlier today and a 5% plunge on September 14 tied to Anthropic CEO Dario Amodei's caution on frontier model development. Asia bore the brunt overnight: South Korea's KOSPI fell nearly 8% and Japan's Nikkei lost almost 5%, while MSCI's Asia-Pacific ex-Japan index had its worst day since late July. US markets diverged — the Dow rose 1.08% and the S&P 500 and Nasdaq eked out gains as healthcare and materials led. Macro data added pressure: September PPI rose the most in 4.5 years and retail sales beat, keeping the Fed's October 28 decision in play with futures pricing a 73% chance of a hold. The 10-year Treasury yield fell 10.29bp to 5.087%, its biggest daily drop in over a year, as investors fled to bonds.
At the time of this announcement, SOX was trading at $11,581.22 on NASDAQ in the Technology sector. The 52-week trading range was $6,160.04 to $14,655.29. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.